BGN Entrepreneur

US spending levels rise by 0.4% rather than the original forecast of 0.5%. Income was higher than originally reported, rising by 0.3% rather than the original report of 0.1%. According to the Commerce Department, the levels were less robust in January than previously expected.
Economists indicated that, the Americans are gradually changing their spending behavior in the face of large capital losses in investment and real estate portfolios, a weak job market as well as tight credit.
The US job market continues to cut jobs on a monthly basis, although the pace of losses has slowed down. It is believed that the nation’s economy might have created jobs this month. However, even though job opportunities start reappearing, paychecks are expected to remain suppressed as a lot of employers do not have pressure to raise the salaries.
As a result, the spending on durable goods, such as cars and air-conditioners, fell by 0.4% in February. Meanwhile the spending on non-durable goods, such as food and clothing increased by 0.7%. The prices suggest that inflation in the US was largely tame.

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